Home prices continue to soften in Saskatoon.
According to a report from the Canadian Real Estate Association (CREA), home prices are down five per cent in Saskatoon since their peak in 2015.
READ MORE: Saskatoon housing prices flat in Q1 2017: Royal LePage
“We did go through a very big housing boom, and then we went through a period of builders building a lot of product whether it was family or multifamily,” Ashley Turner, a realtor at Century 21 Fusion, said.
“Now we’re just seeing that aftermath.”
Turner said condos are a major contributor to that local inventory of homes after a lack of availability during the boom.
“There was a lot more people entering that condo market, which we have seen very much so flooded with builders, a certain amount of land in new areas being mandated for multi-family construction as well.”
Condo prices are down 10 per cent over the last three years and absorption rates are sitting around six months.
READ MORE: Saskatoon housing starts trend downward in February: CMHC
This has many developers opting to rent out units rather than selling them.
There are currently over 1,900 listings in the Saskatoon area, and local experts see that inventory of homes continuing to grow.
“If we look at 2017, the year to date as of the end of April, we’re seeing an increase in permits being pulled in terms of single family homes and multi-family homes as well as renovations,” Chris Guérette, the CEO of the Saskatoon and Region Homebuilders Association, said.
READ MORE: Saskatoon home seekers still benefitting from buyer’s market conditions
Saskatoon is being seen as a buyer’s market due to the lower prices and higher inventory.
“It’s not the type of market where sellers are throwing a price out and knowing they’ll get offers on properties,” Turner said.
“Buyers are able to look at 20 properties that could be of interest and pick the best one for them.”
The oversupply has been seen as problematic by real estate experts, especially for residents planning on selling their home this year.
But if a home is valued at over $600,000, you may have a chance; sales in that category are up by 65 per cent.
Comments